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3 Lessons for Successful Company Culture Change

Back to blog homepage for: Strategic Employee Recognition: by Derek Irvine

Recognise This! –Proactive culture change and management is strategy.

Company culture is much in the news these days, a development I am very excited to see as it shows more and more buy-in to the importance of culture as something that can be created and, yes, proactively managed.

A round-up of articles that have appeared during the last few days teach three important lessons on organisational culture:

Lesson 1 – In the Battle of Strategy vs. Culture, Everyone Wins

What’s more important? Strategy or culture? I’ve written my own opinions based on research from Booz & Co. The argument continues on, with this perspective I particularly like from Bob Frisch, managing partner of The Strategic Offsites Group:

“It’s like asking whether you would rather back a great poker player with weak cards or an average player with great cards. You’re more likely to win when you have both: a great player and great cards. The same goes for culture and strategy. You don’t have to choose. Culture doesn’t eat strategy, and the company that lets culture do so is likely to starve.”

That quote comes from a Fast Company article that goes on to share insights from the CEOs of companies with famously strong cultures, including LinkedIn, Facebook, and Jigsaw. Be sure to click through for several videos.

Lesson 2 – A Healthy Culture Has Defined Attributes that Require Effort

John Jantsch, founder of Duct Tape Marketing, pointed out in a recent AmEx Open Forum article that a healthy culture takes work over time to create, manage and maintain. He also defines seven attributes of a healthy culture:

“My belief is that a healthy culture is a shared culture, one created through shared stories, beliefs, purpose, plans, language, outcomes and ownership. These aren’t little things; these aren’t things that you get right during an annual retreat. These are things molded over time with trust and passion and caring. These are things that evolve because you work very hard at finding them, holding them and making them important.”

Yes, company cultures can “just happen” (and, unfortunately, they very often to). But you can also take control of your culture by focussing on these seven attributes.

Lesson 3 – You Can Change Corporate Culture

And that leads us to one of my go-to writers on company culture, Chris Edmonds of The Ken Blanchard Cos., who explained in detail in a recent SmartBrief article the critical role of leaders in changing culture:

“Corporate culture is the most important driver of what happens in organisations, and senior leaders are the most important driver of their organisation’s corporate culture. To change an organisation’s culture, all leaders must change how they spend their time and what they communicate and reinforce on a daily basis. Their focus shifts from ‘great performance’ to ‘great performance WITH great citizenship.’”

And that’s the heart of the matter – reinforcing desired behaviours through strategic recognition frequently is the foundation of proactive culture change and long-term management. It’s recognising the how and not just the what. It’s honoring and praising the progress, and not just the results.

Have you tried to change company culture? What methods did you use? How successful was the effort?

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Editor's Note - May 10

Had a busy week with two days at the Responsible Business Summit in London. What struck me was the appetite for sustainability in the corporate world. I spoke to senior figures from multinationals who knew wholeheartedly that businesses in the future would not succeed if the society around them failed.

Much of this appetite was understandably focused on collaboration - the future of sustainability. Words that were previously indicative of success - power, might, scale, size - are no longer enough in the open source, peer-reviewed future where opponents will not simply grumble and moan and then leave you in peace. Companies must work with governments, NGOs, charities and social enterprises as a matter of course. And even competitors, where necessary.

Facilitating this collaboration is the big challenge of the next five years. Highly-strung and ego-centric companies, feverish with the need to protect their brand, will struggle the most, but it's either adapt or die.

The business/charity relationship is one of the most interesting focal points. Business power can drive positive social change in so many ways but charities are the key holders to communities. As businesses are expected more and more to play a stake in the future, charity partnerships should be top of the corporate priority list. Businesses that don't work closely with a charity will find themselves with reputational problems.

There's a lot more to CSR, of course, but collaboration is the bedding on which CSR will rest. Businesses can no longer find the answers to all their problems in their own resources and assets.

And for many that's a scary thought.

Any thoughts, thoughts or questions, drop me a line on editor@hrzone.co.uk.

Best wishes

Jamie